Agenda Package - 11-19-12 Reg. Meeting

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-16- EXHIBIT NO. P -2 PAGE 2 OF 11 rates associated with this transfer will be offset by a corresponding reduction to PEC's DSM /EE rider in the amount of $28 million. When this transfer of the DSDR program into base rates is considered in conjunction with the application for an increase in base rates, the net additional overall annual North Carolina retail revenues requested by PEC are approximately $359 million, a net average increase of 11 %. The Company also requested approval of an accounting methodology for its nuclear refueling outage expenses and authorization from the Commission, pursuant to Commission Rule R8 -27, to defer in a regulatory asset account certain expenses as part of the implementation of the proposed methodology. The Public Staff presented this matter to the Commission at its Staff Conference on November 5, 2012. Based upon a review of the application and the Public Staff's recommendation, the Commission is of the opinion that the proposed changes in the Company's rates and charges will affect the public interest. The Commission consequently concludes that the rates should be suspended and an investigation should be instituted to determine whether such rate changes are just and reasonable. Further, pursuant to G.S. 62 -137, the Commission is of the opinion _that the proposed changes constitute a general rate case and that the changes requested should be set for public hearing. Accordingly, the Commission finds good cause to set the application for hearing, suspend the proposed rates for up to 270 days from November 11, 2012 (the date when such rates would otherwise go into effect), establish deadlines for the filing of petitions to intervene and testimony, establish appropriate discovery rules, and require public notice. The guidelines regarding discovery in this docket, subject to modification for good cause shown, are as follows: 1. Any deposition shall be taken before the deadline for the filing of Public Staff and other intervenor testimony. A notice of deposition shall be served on all parties at least seven business days prior to the taking of the deposition. 2. Any motion for subpoena of a witness to appear at the evidentiary hearing shall be filed with the Commission before the deadline for the filing of the Public Staff and other intervenor testimony, shall be served by hand delivery or facsimile to the person sought to be subpoenaed at or before the time of filing with the Commission, and shall make a reasonable showing that the evidence of such person will be material and relevant to an issue in the proceeding. G.S. 62 -62. Unless an objection is filed, the Chief Clerk shall issue the requested subpoena within one business day of the filing of such motion. 046